- Can you deduct health insurance costs on your taxes?
- Who can claim medical expenses on their taxes?
- Which medical expenses are tax-deductible?
- How to calculate your medical expense deduction
- Self employed health insurance deduction
- How to maximize your health care deductions
- What does maximize deductions mean?
- FAQ: Health insurance deductions
Can you deduct health insurance costs on your taxes?
Yes, eligible medical expenses and health insurance are tax-deductible, but only out-of-pocket costs that exceed 7.5% of your adjusted gross income (AGI) and only the amount above that threshold. That includes health insurance premiums.
Not all healthcare expenses are tax-deductible. For instance, you can’t deduct what your employer pays for your coverage. Another example is when your health plan covers a percentage of your health care services. You can only use what you paid for health care as deductions.
Let’s say you go to the doctor and receive $100 worth of health care services. If your health insurance plan covers 75% of that $100, you can’t deduct the full amount.
Who can claim medical expenses on their taxes?
You can claim medical expenses on your taxes if your total qualifying health care costs exceed 7.5% of your adjusted gross income and your itemized deductions exceed the standard deduction of $16,100 for singles, $24,150 for heads of household and $32,200 for married filing jointly
The Internal Revenue Service (IRS) has two critical thresholds for people who don’t own a business:
- The standard deduction in 2026 is $16,100 for singles, $24,150 for heads of household and $32,200 for married filing jointly. If your tax-deductible health insurance costs don’t exceed those limits, it’s best to go with a standard deduction rather than itemize your health care deductions.
- Your health care costs must exceed 7.5% of your adjusted gross income. The AGI is what you earn in wages, investments and other sources minus things like alimony and student loan interest. You can find your adjusted gross income on line 11 of Form 1040.
So, the first question to answer is: How many eligible health care costs do you have? If your health care costs are less than the standard deduction amount, you should take the standard deduction instead.
Chris Peterson, tax manager at CB Smith & Associates, explains that most people take the standard deduction rather than itemize health care deductions because they don’t exceed the standard deduction level.
Which medical expenses are tax-deductible?
Qualified medical expenses that can be deducted on your taxes include out-of-pocket costs for medical appointments, tests, and surgeries, prescription drugs and durable medical devices, and home care services. Common items you can deduct from taxes include:
- Medical appointments
- Surgeries
- Tests
- Prescription drugs
- Durable items like wheelchairs
- Prescription glasses
- Home care
- Guide dog or service animal
- Wigs for patients who lost their hair due to illness
You can also deduct transportation expenses for going to the doctor -- parking, tolls, mileage, cab or bus fares -- and even airfare and certain lodging costs for out-of-town treatments. (See IRS Publication 502 for a list.)
Only out-of-pocket expenses -- copays, deductibles, etc. You can’t write off the portion of the bills that your health plan or employer paid if you have an employer-sponsored plan.
Alan Steeples, certified public accountant and tax services manager at In Concert Financial Group, notes that the key to whether something is eligible for tax deduction is whether a medical professional prescribed or recommended it. That can even include whirlpools for severe arthritis and air purification systems for patients with asthma. On the flip side, over-the-counter medication and vitamins aren't usually eligible for deductions.
“Rule of thumb: If it’s not prescribed or recommended by a physician, you can’t write it off,” Steeples says.
How to calculate your medical expense deduction
You can calculate your medical expense deduction by adding up all of your out-of-pocket expenses, determining how much 7.%% of your adjusted gross income is, and then subtracting that amount from your total expenses. The remaining amount is what you can deduct.
Here's an example:
Let’s say you have an AGI of $100,000. 7.5% of $100,000 is $7,500. Any qualifying medical and health care costs beyond that amount are tax-deductible.
If you have $15,000 in qualified expenses, you can deduct $7,500 from your taxable income when you file your taxes if you don’t take the standard deduction.
You shouldn't deduct money for premium tax credits if you have an ACA health plan from the health insurance marketplace. Those plans often have subsidies like tax credits that reduce the cost of Affordable Care Act plans. You shouldn’t include those subsidies in your deductions.
Self employed health insurance deduction
Most self-employed people can deduct health insurance premiums as an adjustment to their gross income, as long as they have no other coverage available (such as through a spouse) and only up to the amount of their net business income for the year.
There are two requirements to write off health insurance premiums as a self-employed person:
- You can’t have health insurance coverage elsewhere, such as through a spouse.
- You can only deduct up to your net income. If you don’t make any money or have a net loss, you can’t deduct anything. You can’t combine income from multiple businesses, either.
If you don’t deduct 100% of your health insurance premiums on Schedule 1 and you itemize your health insurance deductions, you can add the rest to your health insurance costs for the year on Schedule A. Bear in mind it will be subject to the 7.5% threshold.
Can you deduct health insurance premiums without itemizing?
Yes. Self-employed people with net profit for the year can deduct medical and health expenses without itemizing. There's no need to itemize your deductions because it’s an adjustment to your income.
“These deductions reduce the business owner’s AGI dollar for dollar and can be significantly more advantageous than including their premiums in their itemized deductions,” Steeples says.
How to maximize your health care deductions
To maximize your health care deductions, consider scheduling tests, procedures and treatments within the same tax year as much as possible. Once you have passed the 7.5% threshold, all additional costs from that point forward will be deductible. Keep records of all of your expenditures.
Although you may not always have control over when you need healthcare, you can schedule needs that are elective or that you know are needed in the near future before the tax year ends, especially if you are close to or already over the 7.5% mark.
What does maximize deductions mean?
Maximizing your deductions means that you make the most of the opportunity to use the health care deduction. Once you have crossed the 7.5% threshold, all qualified expenses will start to add up. So, as noted above, if there’s a medical procedure or purchase you have been putting off, you might want to consider getting it taken care of in the current tax year, so that you can get the biggest deduction possible.
Make sure that you carefully document all of your expenses so that you don’t miss any when you add up your deduction.
Silver plans provide a good balance of monthly premiums with out-of-pocket costs. Coinsurance is 70% with a silver plan, meaning you will pay 30% of the costs after your deductible is met, up to the out-of-pocket limit. Silver plans are a good choice for people who are in generally good health but don't want high out-of-pocket costs if something goes wrong. Bronze plans are a popular choice with those who value low monthly premiums and are willing to pay more when they need care. Coinsurance is set at 60%, meaning you will pay 40% if you do need care, up to the out-of-pocket limit. Bronze plans are good for those who don't expect to need many services outside of preventative care throughout the year.
ACA platinum plans have the highest monthly premiums, but the lowest out-of-pocket costs. You'll pay more monthly in return for lower deductibles, copays and coinsurance amounts. Coinsurance with platinum plans is 90%, which means you pay 10% after the deductible, up to your out-of-pocket limit. Platinum plans are good for those who anticipate a lot of medical needs throughout the year.
Gold plans cost a little less than platinum plans, and come with higher out-of-pocket costs. The coinsurance amount on a gold plan is 80%, which means you pay 20% after the deductible, up to your out-of-pocket limit. A gold plan is a good idea if you think you'll need a lot of care throughout the year, but don't want to pay platinum premiums.Health insurance finder tool
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Employer-sponsored health insurance
Preferred-provider Organization (PPOs)
Preferred-provider organization (PPOs) plans are the most common type of
employer-based health plan. PPOs have higher premiums than HMOs and HDHPs, but
those added costs offer you flexibility. A PPO allows you to get care anywhere
and without primary care provider referrals. You may have to pay more to get
out-of-network care, but a PPO will pick up a portion of the costs.
Find out more about the differences between plansHealth maintenance organization (HMO)
Health maintenance organization (HMO) plans have lower premiums than PPOs.
However, HMOs have more restrictions. HMOs don't allow you to get care outside
of your provider network. If you get out-of-network care, you'll likely have to
pay for all of it. HMOs also require you to get primary care provider referrals
to see specialists.
Find out more about the differences between plansHigh-deductible health plans (HDHPs)
High-deductible health plans (HDHPs) have become more common as employers look
to reduce their health costs. HDHPs have lower premiums than PPOs and HMOs, but
much higher deductibles. A deductible is what you have to pay for health care
services before your health plan chips in money. Once you reach your deductible,
the health plan pays a portion and you pay your share, which is called
coinsurance.
Find out more about the differences between plansExclusive provider organization (EPO)
Exclusive provider organization (EPO) plans offer the flexibility of a PPO with
the restricted network found in an HMO. EPOs don't require that members get a
referral to see a specialist. In that way, it's similar to a PPO. However, an
EPO requires in-network care, which is like an HMO.
Find out more about the differences between plans
Learn more about individual insurance plans
Know more individual insurance / ACA 
Know more individual insurance / ACA 
FAQ: Health insurance deductions
Is it worth claiming medical expenses on taxes?
Claiming medical expenses is worthwhile if they exceed the standard deduction and comprise more than 7.5% of your AGI.
So, to file medical expenses, they would have to reach those levels to benefit from claiming medical expenses on your income tax.
Are Health Savings Account contributions tax deductible?
HSA contributions are deductible if made with after-tax dollars, while they aren't tax deductible if the money was pre-tax. If the money wasn't taxed, it's not eligible for a tax deduction because, at that point, you would benefit from not paying taxes twice.
Is supplemental insurance tax-deductible?
Yes. You can deduct premiums for supplemental health insurance policies like Medigap or dental insurance on your taxes, but these costs are subject to the 7.5% of AGI threshold.
